Bankruptcy

An Overview of Bankruptcy

Filing for bankruptcy provides clients a way to get relief from their financial burdens. Bankruptcy can be an effective way to prevent harassment from creditors, help prevent home foreclosure, and stop wage garnishment. Bankruptcy can eliminate your unsecured debt, giving you relief from unmanageable debt. After filing bankruptcy, many people find themselves better prepared for the future. It can give you the clean slate you need to start saving for your retirement, your children’s education, or just to give you breathing room in your finances.

Here are just a few of the ways bankruptcy could help you;
– Stop Wage Garnishment: Filing a bankruptcy petition invokes an automatic stay pursuant to 11 U.S.C. Section 362, protecting debtors from collection activities including wage garnishment.
– Prevent Foreclosure: The automatic stay protection offered by bankruptcy may help you prevent foreclosure. It can give debtors the time they need to become current on their payments, or work out an option with their lender to stay in their home. It can also help prevent by foreclosure by eliminating credit card or personal loan payments thereby making the mortgage payments more affordable.
– Get a fresh start: Bankruptcy was designed to give debtors a fresh start by eliminating some or all of your debts.

Chapter 7 Bankruptcy

Bankruptcy is a right U.S. citizens have to eliminate debt, stop debt collection and get a fresh financial start. Most people who file for bankruptcy do so under Chapter 7 of the United States Bankruptcy Code. Chapter 7 bankruptcy is available to both individuals and businesses and can eliminate most debts, such as credit cards, personal loans, and more. Although chapter 7 may be referred to as “liquidation,” due to the fact that nonexempt property could be surrendered to pay off debts, California law protects many of your assets. This means that in filing a chapter 7 bankruptcy a debtor may be able to not only eliminate most of his or her debt but also keep certain property. In fact, it is extremely rare for anyone filing chapter 7 bankruptcy in California to lose any property at all.

At the Law Office of Tonya J. Hernandez, we help clients throughout Sacramento County, Yuba County, and Placer County who are seeking debt relief through bankruptcy. Because we focus on personal attention, we will take the time to talk about what we can do to help you and the impact Chapter 7 bankruptcy may have on you.

Involve an Attorney

Making the decision of whether to file a chapter 7 bankruptcy case is important. By retaining a competent attorney, you dramatically increase your chances of realizing the full benefits bankruptcy has to offer. We know how to properly file your case, protect your assets, and how bankruptcy will affect you now and in the long run.

Chapter 13 Bankruptcy

Chapter 13 is a useful tool to stop foreclosure and offer individuals with regular income the advantages that bankruptcy has to offer – without the surrender of assets. Unlike a chapter 7 liquidation (where certain assets may be surrendered and liquidated to pay off debts), chapter 13 involves a repayment plan wherein the debtor pays off part or all of his or her debt over a 3 to 5 year period. When the repayment plan is successfully completed, remaining eligible debt will be discharged and the debtor will obtain a fresh financial start.

Are you facing foreclosure or overwhelming debt? The Law Office of Tonya J. Hernandez helps clients throughout Sacramento and surrounding areas. We have the experience to understand how to protect our clients’ interests and suggest the best option for a better, brighter future. By talking to a attorney today, you can obtain the information you need to make the right choice.

Our firm understands bankruptcy. Best of all, unlike the bigger law firms, we pride ourselves on providing prompt, attentive, courteous and affordable service to our clients. To learn more about how Tonya J. Hernandez may be able to help you, please contact us for a FREE initial consultation.